REXX » Topics » Other

This excerpt taken from the REXX 10-K filed Mar 11, 2009.

Other

In addition to the asset retirement obligation discussed in note 2—Summary of Significant Accounting Policies, we have withheld from distributions to certain other working interest owners amounts to be applied towards their share of those retirement costs. Such amounts, totaling $302,000 and $322,000, are included in Other Deposits and Liabilities at December 31, 2008 and December 31, 2007, respectively.

This excerpt taken from the REXX 10-Q filed Aug 6, 2008.

Other

In addition to the Asset Retirement Obligation discussed in Note 3, we have withheld from distributions to certain other working interest owners amounts to be applied towards their share of those retirement costs. These amounts total $302,000 and $322,000 and are included in Other Liabilities at June 30, 2008 and December 31, 2007, respectively.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following is management’s discussion and analysis of certain significant factors that have affected aspects of our financial position and results of operations during the periods included in the accompanying unaudited financial statements. You should read this in conjunction with the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited financial statements for the year ended December 31, 2007 included in our Annual Report on Form 10-K and the unaudited financial statements included elsewhere herein.

Our management uses a variety of financial and operational measurements at interim periods to analyze our performance. These measurements include an analysis of production and sales revenue for the period, EBITDAX, a non-GAAP financial measurement, lease operating expenses per barrel of oil equivalent (“LOE per BOE”), and general and administrative (“G&A”) expenses as a percentage of operating revenue.

This excerpt taken from the REXX 10-Q filed May 9, 2008.

Other

In addition to the Asset Retirement Obligation discussed in Note 3, we have withheld from distributions to certain other working interest owners amounts to be applied towards their share of those retirement costs. Such amounts totaling $322,000 and are included in Other Liabilities at March 31, 2008 and December 31, 2007.

 

  12. SUBSEQUENT EVENTS

On May 5, 2008 we completed a public offering of 9.775 million shares of common stock at an offering price of $20.75 per share. These shares included 5.775 million shares to be offered by us (which includes 1.275 million shares sold pursuant to the exercise of an over-allotment option granted to the underwriters’ of the offering) and 4.0 million shares sold by certain selling stockholders. The net proceeds to us from the underwritten public offering, after underwriting discounts and offering expenses, were approximately $112.0 million. We intend to use the net proceeds from this offering to fund, in part, our capital expenditure program for 2008, including our enhanced oil recovery project in the Lawrence Field in Lawrence County, Illinois and our leasing and drilling activities in the Marcellus Shale, and for other corporate purposes. Additionally, we used a portion of the net proceeds to repay borrowings under our Senior Credit Facility and made investments in short-term, investment grade, interest-bearing securities. We will reborrow amounts from time to time under our Senior Credit Facility as capital expenditures exceed overnight investments and cash flow from operations in periods subsequent to the offering.

On April 14, 2008, we entered into a First Amendment to Credit Agreement with KeyBank National Association (“KeyBank”), as Administrative Agent, and the other lenders signatory thereto (the “First Amendment”). The First Amendment amends certain provisions of our senior credit facility entered into on September 28, 2007.

The First Amendment provides that the borrowing base under our senior credit facility is increased from $75 million to $90 million effective April 14, 2008. The increased borrowing base will remain in effect until the next borrowing base re-determination date. The First Amendment also amends the senior credit facility to provide that, upon an increase in the borrowing base, we will pay to the lenders a borrowing base increase fee equal to 25 basis points on the amount of any increase of the borrowing base over the highest borrowing base previously in effect, payable on the effective date of any such increase. In addition, the First Amendment amends the senior credit facility with respect to our ability to enter into commodity and swap agreements. The First Amendment provides that the Company and its subsidiaries may enter into commodity swap agreements with counterparties approved by the lenders, provided that the notional volumes

 

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for such agreements, when aggregated with other commodity swap agreements then in effect (other than basis differential swaps on volumes already hedged pursuant to other swap agreements), do not exceed, as of the date the swap agreement is executed, 85% of the reasonably anticipated projected production from our proved developed producing reserves for the 36 months following the date such agreement is entered into, and 75% thereafter, for each of crude oil and natural gas, calculated separately. Prior to the First Amendment, the volumes for commodity swap agreements under the Senior Credit Facility could not exceed, as of the date the swap agreement was executed, 75% of the reasonably anticipated projected production from our proved developed producing reserves, for each of crude oil and natural gas for each month during the period during which the swap agreement was in effect for each of crude oil and natural gas, calculated separately.

The First Amendment also amends the Senior Credit Facility to provide that the Company and its subsidiaries may enter into interest rate swap agreements with counterparties approved by the lenders that convert interest rates from floating to fixed provided that the notional amounts of those agreements, when aggregated with all other similar interest rate swap agreements then in effect, do not exceed the greater of $20 million and 75% of the then outstanding principal amount of our debt for borrowed money which bears interest at a floating rate. Prior to the First Amendment, our interest rate swap agreements under the Senior Credit Facility were limited to 75% of the then outstanding principal amount of our debt for borrowed money which bears interest at a floating rate.

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following is management’s discussion and analysis of certain significant factors that have affected certain aspects of our financial position and results of operations during the periods included in the accompanying unaudited financial statements. You should read this in conjunction with the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited financial statements for the year ended December 31, 2007 included in our Annual Report on Form 10-K and the unaudited financial statements included elsewhere herein.

Our management uses a variety of financial and operational measurements at interim periods to analyze our performance. These measurements include an analysis of production and sales revenue for the period, EBITDAX, a non-GAAP financial measurement, lease operating expenses per barrel of oil equivalent (“LOE per BOE”), and general and administrative (“G&A”) expenses as a percentage of operating revenue.

This excerpt taken from the REXX 10-K filed Mar 31, 2008.

Other

In addition to the Asset Retirement Obligation discussed in Note 2, we have withheld from distributions to certain other working interest owners amounts to be applied towards their share of those retirement costs. Such amounts totaling $322,000 are included in Other Liabilities at December 31, 2007 and December 31, 2006.

This excerpt taken from the REXX 10-Q filed Sep 5, 2007.

Other

In addition to the Asset Retirement Obligation discussed in Note 1, Douglas Oil & Gas has withheld from distributions to certain other working interest owners amounts to be applied towards their share of those retirement costs. Such amounts totaling $322,046 are included in Other Liabilities at June 30, 2007 and December 31, 2006.

 

5. LINES OF CREDIT
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